(January 22, 2015)

On January 22, 2015 the European Court of Justice (CJEU) ruled in Case C-55/14, Régie communale autonome du stade Luc Varenne versus État belge (ECLI:EU:C:2015:29).

The following question was referred to the CJEU for a preliminary ruling:

Does the making available of the facilities of a sports installation used exclusively for footballing purposes, understood as being the right to use and enjoy the football stadium playing surface (the pitch) and the players’ and referees’ changing rooms on an ad hoc basis for up to 18 days per season (a season starting on 1 July each calendar year and ending on 30 June the following year), constitute an exempt letting of immovable property for the purposes of Article 13B(b) of [the Sixth Directive] (Article 135(1)(l) of Council Directive 2006/112), in so far as the party granting the right of use and enjoyment:

• is fully entitled to confer identical rights on other natural or legal persons of its choice in respect of days other than the 18 days referred to above;

• has the right to obtain access to those facilities at any time, without the prior consent of the party to whom the right of use and enjoyment is granted, in order, in particular, to satisfy itself as to the proper use of the facilities and to pre-empt any damage, on the sole condition that it does not disrupt the smooth running of sports events;

• retains, in addition, a right of permanent control over access to those facilities, including during the period of their use by RFCT;

• charges a flat-rate fee of EUR 1 750 per day for use of the playing surface, the changing rooms, the bar and the caretaking, surveillance and monitoring service for the facilities as a whole, it being understood that it has been agreed between the parties that, of the amount charged, 20% represents the right of access to the football pitch and 80% the consideration for various services connected with maintenance, cleaning, upkeep (mowing, grass sowing etc.) and ensuring regulatory compliance of the playing surface and ancillary services supplied by the party granting the right of use and enjoyment …?

   

The CJEU ruled as follows:

Article 13B(b) the Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes — Common system of value added tax: uniform basis of assessment, must be interpreted as meaning that the act of making available, for consideration, a football stadium under a contract reserving certain rights and prerogatives to the stadium owner and providing for the supply, by the owner, of various services, including services of maintenance, cleaning, repair and upgrading, representing 80% of the charge which is agreed in the contact to be payable, does not constitute, as a general rule, a ‘letting of immovable property’ within the meaning of that provision. The finding of the facts is for the referring court.

For further information click here to be forwarded to the text of the ruling as published on the website of the Court of Justice, which will open in a new window.

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